The Blog

Here we are in the fall, and the pace of life has clearly accelerated for most families in Inland Empire. Even if you don’t have school-aged children, there’s just something about this season that increases the intensity for everyone. Maybe it’s just football season.

And because it’s so intense, it’s easy to put off difficult things to face.

Like tax debt.

The deadline isn’t breathing down your neck (we’re almost exactly as FAR away from the April 15th deadline as you could possibly be), and so many other parts of life can crowd onto your mental plate.

But that might mean that this is the PERFECT time to rid yourself of the weight around your shoulders.

“If you can see yourself as an artist, and you can see that your life is your own creation, then why not create the most beautiful story for yourself?” – Miguel Ruiz

What makes debt to the IRS so difficult is that it often comes paired with other difficult financial situations. Which makes it seem so much easier to avoid the issue altogether. If you can’t pay your tax bill, it seems pointless to address the issue.

However, the reality is that avoiding your tax debt can be worse than facing it. This is because the IRS charges penalties and interest on unpaid taxes. If you are afraid to file your tax return before the extension deadline, or in April — because you know you can’t pay — well, you’re just digging a deeper hole with failure to file penalties, and other (increased) penalties in the new tax code.

So let’s move past avoidance, and finally take positive action.

The IRS Payment Plan Option

Here’s where to start: as long as you owe $25,000 or less in taxes and penalties, you can apply for an installment plan — and you can even do so online. This streamlines the process quite a bit. You will still be charged interest, but it’s often quite manageable. There are situations in which you will pay origination fees, since the amount is technically considered a loan.

In this process, you can specify how much you think you can put toward your tax bill each month. It’s a way to make things manageable. That said, you will have to keep up with your taxes going forward if you don’t want problems to add up again in the future. And if you owe state taxes, check with your state taxing authority. Chances are that your state also has a payment plan that you can utilize.

Another Option: Get help from Garrett & Associates, CPA

Walking with you through this sort of situation is exactly why we exist. We understand the IRS, the procedures for getting help and the tax system as a whole.

At Garrett & Associates, CPA, we specialize in the settlement process, and can help you figure out whether or not it makes sense to settle your back taxes for less than you owe.

That said, a tax settlement isn’t always an option. A professional tax debt relief specialist can help you review the possible options and figure out what is best for you. The reality is that tax debt — and the penalties and interest — can be overwhelming.

Sometimes you just need somebody on your side.

And one of the most difficult parts of the process is staying on track once you get your tax debt figured out. We walk with you, and help you plan for the future.

We will work with you to check your withholding so that it optimizes the plan we put together. We can help you figure out a savings plan for the future so that you don’t get caught by this problem again.

Regardless of whether you use our help or not, you need to pay attention going forward. Take the small steps NOW to ensure you aren’t caught by this problem again.